Picking A High Value Target
after completing the work of outlining the various segments of customers, you'll need to take a step back to evaluate, which makes the most sense for you to put your resources towards the reality is that some customers are going to be more engaged, more likely to purchase or tell others about their experience than others. We would call this a high value target, high value target as someone who is highly engaged profitable and most likely to come back to buy your stuff in the future. Let's take a look at Brooklyn coffee house to illustrate how they selected a high value customer and how one particular customer could be higher value than another Brooklyn Coffee House has three different customer segments, Locals, Manhattan nights and freelancers, locals are individuals aged 45 plus. They love their neighborhood and those that genuinely supported. They support local shops from the community as well as those that give back to it. However, recently home prices, taxes and rent hikes are forc...
ing them to move out of that area. Manhattan nights, People aged 35 to 45 they tend to travel to the city for work fun and every other thing that they do, they tend to associate most with other Manhattan nights or in other words, other people that also work or live and have fun in Manhattan. They just happen to live in Brooklyn in the local area And finally, there's freelancers tend to be aged 21-35, they were first to move to gentrified or newly improved areas. They appreciate local history and craftsmanship and they also seek to become part of the neighborhood. They tend to be freelancers that are doing work, or entrepreneurs that are doing work during the day that can work from home or from any other venue, freelancers became the highest value target because they spend more time in the shop. They have the need to purchase more of the complimentary food products and are more likely to come back in the evenings and other times for events to meet other people that are also new or recently moved to the area. Please note that while Brooklyn is going to focus most of their efforts on freelancers, this does not mean that the other targets are not relevant. This simply means that with an objective of increasing revenue per customer, they believe it would be best to prioritize their focus and their resources on this particular customer who can generate the best potential return in the short term.